The Sensex and Nifty have rocketed over 8% in just seven trading sessions. Gold? It’s in a league of its own—up a jaw-dropping 27% in 2025, vaulting past Rs 1 lakh per 10 gram in India and $3500 per ounce-mark in London’s bullion market. If your asset allocation plan has gone for a toss, you’re not alone.
This unusual harmony between typically divergent assets has stunned even the street’s veterans. The trigger? A weakening US dollar, escalating trade tensions, central banks hoarding bullion like it’s the cornerstone of financial stability, and a global rush to hedge against uncertainty. The result: the traditional inverse correlation between equities and gold has melted faster than summer ice cream in Mumbai’s Dalal Street.
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“Gold has gained substantially—more than 30% this year—and any such rallies are likely to face intermittent corrections,” said Prabhudas Lilladher’s Sandip Raichura. “Structurally, gold may continue to be on a bull run as governments and investors diversify away from US treasuries. Much higher levels in the next 12 months are likely.”
But while portfolios are swelling, allocation strategies are imploding.
Social media is ablaze with memes of housewives-turned-gold-tycoons outsmarting professional investors. Even veteran banker Uday Kotak tipped his hat, declaring on X that “the Indian housewife is the smartest fund manager in the world.”
So what’s an investor to do when everything is rising?
“Investors should continue to focus on long-term asset allocation,” advises Siddharth Srivastava, ETF head at Mirae Asset. “Invest in both gold and equities—but in a staggered manner. Avoid chasing short-term highs.”
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Srivastava warns that while the macro tailwinds supporting gold like geopolitical tensions, weak dollar and central bank buying remain intact, some profit booking is prudent. “Gold has already shown a strong one-way rally. Consolidation or a price correction may happen.”
Retail flows reflect this gold fever: “Commodity ETFs have seen inflows of around ₹24,000 crore in the last year—₹13,500 crore in just the past 6 months,” Srivastava said, adding that the total AUM of commodity ETFs has crossed ₹74,000 crore as of March-end.
Still, many are grappling with that nagging feeling: Is now too late to board the gold train?
“If you’ve missed the rally and are now tempted to invest at these elevated levels, avoid lump-sum entries. Instead, go for SIPs in gold ETFs. This approach helps average out your purchase price and reduces the impact of short-term volatility. Also, be cautious about over-allocating—keep gold exposure capped at 10% of your portfolio, unless you have a specific reason like hedging geopolitical risk,” says Om Ghawalkar, market analyst at Share.Market.
And if you are the lucky one sitting on huge profits, then analysts suggest you should consider trimming holdings if it’s grown beyond 20-25% of the portfolio. “Now could be a good time to book partial profits—especially if gold holdings have grown beyond 20-25% of your overall portfolio. Consider trimming some of your gold investments to lock in gains while still maintaining a reasonable exposure,” Ghawalkar said.
He also notes that the equity euphoria isn’t baseless. “The Nifty’s surge is backed by strong Q4 earnings, especially in banking and autos, along with robust FPI flows and sectoral strength in capital goods, defense, and renewables.”
The message from the pros? Discipline trumps FOMO.
Three golden rules to survive this rare double rally:
- Trim the excess – If gold’s share in your portfolio has ballooned, it’s time to shave it.
- SIP your way in – For both gold and equities, stagger your entries to manage risk.
- Stay diversified – Don’t chase returns; balance is still your best hedge.
Because in a world where stocks and gold move in unison, your only real asset is a cool head and a clear plan. And maybe… an Indian housewife’s instinct.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)
